NSDL Payments Bank has started its operations in the country, informed the Reserve Bank of India (RBI) in its official communiqué.
RBI has granted in-principle approval to 11 applicants in November 2014, including National Securities Depository Ltd (NSDL) to set up payments banks.
Out of the approved applicants, Airtel Payments Bank, India Post Payments Bank, FINO Payments Bank, Paytm Payments Bank, Aditya Birla Idea Payments Bank and Jio Payments Bank, have already started their operation.
As per the guidelines, these banks are permitted to accept deposits, and issue ATM/debit cards, among other activities. They, however, cannot issue credit cards, and perform lending activities.
According to RBI, the Payments Banks and Small Finance Banks can participate in the Call/Notice/Term money market both as borrowers as well as lenders.
It added that such eligibility is valid before to the completion of the process to get themselves included in the second schedule of Reserve Bank of India Act, 1934.
NSDL is the largest depository in India. It was established in August 1996 and offers a bouquet of services ranging from end investors, stockbrokers, stock exchanges, custodians, issuer companies etc through its wide network comprising of more than 260 depository participants/business partners.